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Wednesday, March 3, 2010

Who should tag the bag ?

Behind this question lies one of the most discussed process step today. Now that most airlines have implemented self service check-in, bag tagging and bag drop are the steps that are the most costly in terms of resources : staff and airport space.
So tagging by check-in agent, specialized agent or passenger ?
Historically, the check-in agent has done so. And although the process looks optimized, it is not. Think about it : a full counter check-in takes in average between 2 and 4 minutes depending on the airline and type of flight. This an average time, that is to say the total time between 2 passengers, including moving time and preparation time. But this is the real indicator of resource utilization. Technical time, i.e. time during which the application is used only covers part of the process.
Among this 2 to 4 minutes, tagging is not just a matter of seconds : there are numerous steps involved and the total time is around 1 min : here is a simplified list of the steps and the approximate time:
Ask passenger number of bags : 5s
Move the bag in position : 15s
Request bag tags in the system : 3s
Print one bag tag : 5s
Take the bag tag and peel it : 10s
Attach the bag tag : 15s
Take the claim and stick on boarding pass : 10s
So do you really want to continue asking your agents to place the bag tag ? Do you have the possibility to do differently ?
Doing differently does not necessarily mean delivering bag tags to customers and explaining how to place them. Improving the process means becoming "leaner" i.e. reducing the resources (staff and counter) that are needed to perform the operation.
You have several options to do so :
1. printing bag tags on a printer facing the agent (common in the USA). This method is more efficient than one could think : it removes all the steps up to placing the bag tag by the agent. Thus the resource utilization (agent + counter) is reduced by approximately 40%. This is also one of the simplest options to put in place as there is no regulation that prevents from doing this. The main shortcoming is that the level of optimization is limited.
2.In Europe the option that has been implemented is printing bag tag at a kiosk and asking passengers to place it. This is also how it works in Canada, Germany, New Zealand, Spain, the UK... Kiosks deliver a bag tag that is optimized for self tagging, and passengers apply the bag tag. The process is longer for passengers who are doing it for the first time (around 1 min to apply the first bag tag but only 15s in average for the second bag tag). For passengers who are not comfortable to place the bag tag themselves a roving agent or the bag drop agent will do it.
Last but not least, delivering permanent bag tags is under trial. The great promise of this process is to expedite the process for frequent flyers. Passengers receive an RFID plastic bag tag with their name and frequent flyer number. they attach that bag tag to their bag and at the airport, an agent scans the bag tag before injection. Once the bag is injected, a regular (bar-coded bag tag) is placed behind the scene. This retagging process could look sub-optimal : it involves an additional person in the process. But you could compare it to what happens in manufacturing industries. It would come to nobody's mind to ask one worker to assemble a car from A to Z. Instead, the process has been divided into many short and simple steps - Taylorism -. This is exactly what is at play in the permanent bag tag process : the 1-minute step is broken into 2 shorter steps performed by 2 specialized agents : the "bag accepter" and the "bag retagger".
For airlines and airports that wish to optimize the bag process at check-in there are a number of well known options to choose from : the decision will now depend on regulation and willingness to change...

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